How Galvix Works: Role & Responsibilities

This document outlines how Galvix and its customers work together to deliver effective sales tax compliance. It describes the respective roles, responsibilities, and operating principles that support this collaboration. This document should be read together with Galvix’s Terms of Service and does not replace or override any provisions of the Terms of Service.

1. Nexus Tracker

Customer Responsibilities

Data Accuracy: The Customer must maintain and timely update accurate physical presence details (employees, inventory, offices, etc.) and all transaction data within the Galvix platform.
Initiation: Review Nexus Tracker in-app or email alerts, and make a decision on registration.

Galvix Responsibilities

Analysis: Periodically (at least once a month), Galvix will analyse the Customer's provided transaction and physical presence data to determine potential nexus exposure.
Alerting: Galvix will notify the Customer (via email or in-app alert) when nexus thresholds are approaching or exceeded, providing details on the contributing factors.

2. Returns Preparation & Filing

Customer Responsibilities

Setup & Maintenance (Ongoing)

Account Credentials: Provide and maintain valid state e-filing credentials by the last day of the prior month, ensuring the account is active, linked to the correct permit, have return filing option available for required filing period & configured with Galvix's 2FA email where required. Some states require periodic password resets or license renewals.
Configuration: Ensure all configurations—including product tax categories, registration details, scheduled returns, bank payment information, and customer exemption rules—are accurate and current in the Galvix account at all times.
State Notices: Inform Galvix within 7 business days of receiving any state notices related to changes in filing frequency, portal access, penalties, or interest assessments.

Monthly Deadlines (Filing Month)

Data Submission (By the 3rd): Provide and verify that all transaction data has been successfully imported into Galvix (via accepted CSV format or supported integration). Share any information on penalties or credits received.
Review (By the 8th): Review the draft return prepared by Galvix and notify Galvix of any discrepancies.
Approval (By the 10th): Approve the final draft return to ensure timely filing.
Funds: Ensure adequate funds are available in the designated bank account for the state to debit the authorized tax amounts.

Galvix Responsibilities

Draft Preparation (By the 5th): Prepare the draft sales tax return using all Customer-provided data and configurations, including any penalties or credits shared by the 3rd.
Filing: File the approved returns with the respective state agency using the Customer’s credentials by the 20th or the due date.
Documentation: Provide acknowledgement copies of the submitted returns in the Customer's Galvix account.
Assistance: Assist the Customer in handling state notices related to a return filed by Galvix.

3. State Registration

Customer Responsibilities

Initiation: When nexus is exposed in a state customer shall make a decision on registration, and formally request Galvix to register by emailing to registrations@galvix.com with required details (state, effective start date, nexus type).
Data Provision: Promptly provide all required entity, party, business activity, and past filing information needed for the application upon Galvix's request.
Cooperation: Promptly share OTPs or verification codes from state agencies and attend calls with state agencies if requested to prevent delays.
Review: Review and acknowledge all final registration details and credentials provided by Galvix.

Galvix Responsibilities

Application Management: Collect necessary details, prepare, submit the application to the state agency, handle all state queries and follow-up requests.
Coordination: Notify the Customer if any additional information or direct intervention (e.g., a call to the state) is required.
Finalization: Obtain the Sales Tax ID, create/configure the e-filing account (including Galvix's 2FA), and hand over all registration details and credentials.
Setup: Configure the new state registration and scheduled returns in the Galvix account (if filing services are required by the customer).

4. Tax Determination

Customer Responsibilities

Registered States: Verify the list of states where the business is registered to collect tax is up to date in the Galvix account.
Product Mapping: Maintain correct tax category mapping for all products.
Exemptions: Store, manage, and keep the list of exemption certificates and rules (customer and channel-based) up to date in the Galvix account.
Issue Reporting: Report any tax determination issues to Galvix and provide necessary access to their billing system for troubleshooting upon request.

Galvix Responsibilities

Tax Calculation: Offer tax calculation through an API or supported integrations with the Customer’s billing system.

5. Value-Added Services

A. Notice Assistance

Customer Responsibilities:

Monitor all channels for sales & use tax notices. Share relevant notice copies with Galvix within 7 business days. Take action directly or via an external advisor unless contracted otherwise with Galvix.
Review penalty notice(s), determine if payment is required, and make the payment based on an internal decision. Request Galvix assistance only if desired.

Galvix Responsibilities:

Review shared notices to identify potential impact on returns/filings. Provide high-level guidance on next steps without assuming liability (except for confirmed late filings due to Galvix error after timely Customer approval).
Review the penalty notice(s) and suggest potential remedies or waiver pathways. Provide general advisory support without direct state handling unless separately contracted.

B. Delinquent or Amended Returns

Scope: Refer to Section 2, "Returns Preparation & Filing." Note that the timelines for submission and processing may vary from the standard monthly schedule.

Notes:

The Customer's cooperation, timely action, and provision of accurate data are essential for effective sales tax compliance for their business(s).
Galvix is not responsible for delays or non-compliance resulting from the Customer's failure to meet their obligations.
Galvix, Inc. does not provide tax, legal, or accounting advice. Any information shared by Galvix and its team members is provided for informational purposes only and should not be considered a substitute for professional advice. Recipients should consult their own advisors before taking action based on this information.